| Report: Chicago
Highway Bottlenecks Among Worst Nationwide A January 2006 Federal Highway
Administration report shows that Chicago has one of the worst highway interchange
bottlenecks in the nation.
In addition, the report finds that the nation
overall is experiencing a freight transportation capacity crisis that increasingly
threatens the strength and future productivity of the U.S. economy.
The
FHWA report, "An Initial Assessment of Freight Bottlenecks on Highways,"
found bottlenecks are causing truckers 243 million hours of delay annually. At
a direct user cost of $32.15 per hour, the delay from bottlenecks is costing trucking
companies nearly $8 billion annually, the report said.
The study analyzed
four major types of highway freight bottleneck delays: highway interchanges, signalized
intersections, steep grades and lane reductions.
Ranked by annual hours
of delay for all trucks, Chicago is one of the top cities for highway interchange
bottlenecks, in addition to Atlanta, Phoenix, Los Angeles and Buffalo-Niagara
Falls, N.Y.
Overall, bottlenecks represent 40 percent of all congestion
delays, followed by traffic incidents (25 percent), bad weather (15 percent),
work zones (10 percent), poor signal timing (5 percent) and special events (5
percent).
Without major capacity investments, FHWA estimates "that
by 2020, 29 percent of urban National Highway System routes will be congested
or exceed capacity for much of the day and 42 percent of National Highway System
routes will be congested during peak periods."
By comparison, the
agency said, only 10 percent of the urban National Highway System routes were
congested in 1998.
Bush Budget Cuts Funding For Transit, Airports President
Bush's proposed $2.77 trillion federal budget would cut funding for transit and
airport programs but boost highway spending, an analysis by the Washington, D.C.-based
American Road & Transportation Builders Association shows.
The proposal
calls for federal transit investment of $8.88 billion, but this amount is $100
million below the FY 2007 funding level guaranteed by Safe Accountable, Flexible
and Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU).
In
addition, the Administration's budget recommends a $765 million, or 22 percent,
reduction in federal airport construction investment from the current level of
$3.52 billion.
On the upside, the proposal recommends record funding for
a number of federal transportation programs, including a $3.4 billion boost in
federal highway investment.
While a more than $2 billion FY 2007 highway
funding increase was called for by the Safe Accountable, Flexible and Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU), an additional $842
million is recommended in the budget due to Highway Trust Fund Highway Account
revenues that exceeded SAFETEA-LU's estimates.
The Administration's budget
proposal is not binding but rather represents the first step in the annual budget
process. Federal spending decisions for each fiscal year are not finalized until
the enactment of the 12 individual appropriations bills.
Study: Delays in Permit Approvals Cause Millions in Lost Revenue Communities
with an efficient building permitting process can gain millions of dollars in
tax revenues and significantly bolster their economic development, a study finds.
The
study, which the Washington, D.C.-based American Institute of Architects released,
concluded that the implementation of a responsive permit process over a five-year
period could result in a 16.5 percent increase in property taxes and a 5.7 percent
increase in construction spending.
The report, "The Economic Impact
of Accelerating Permit Processes on Local Development and Government Revenues,"
presents calculations assuming three-month acceleration in total development time.
It focuses on nonresidential projects that accounted for $295 billion in new investment
in 2004, according to the Department of Commerce.
"Within the last
five to ten years, there has been a substantial increase in delays in building
permit approvals," said AIA Chief Economist Kermit Baker.
Highlights
of the report include the following:
A three month acceleration in
permit approval on a 22-month project cycle would make a project more financially
attractive and could determine whether the project is undertaken at all
Higher rents for all tenants are caused by permitting delays Improving permit
processes can attract investment from areas outside a local community
Accelerating the permitting process can permanently increase local government
revenues. Increasing construction spending caused by more efficient permitting
processes will provide broader economic benefits.
Prior to the recent U.S.
Conference of Mayors meeting, the report was sent to 1,000 mayors, local building
permit officers, city council members and local municipal and county officials.
The
full report can be read by visiting www.aia.org/SiteObjects/files/permitstudyfullreport.pdf
on the Internet. New York-based accounting firm PricewaterhouseCoopers LLP
performed the study.
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